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Please identify the problem and make the adjustments as needed. Deprecation expense if $20,000 for previous year Equipment repair On July 1, 2022, one of
Please identify the problem and make the adjustments as needed.
Deprecation expense if $20,000 for previous year
Equipment repair On July 1, 2022, one of our server/equipment broke down. The cost of $11,500 in repairs is included in repairs and maintenance expenses. The repair company claims the repairs will increase the server's service capacity, increase the cycle time by 10%, and increase capacity by 5% to 10%. The programmer staff really did see a difference in the performance of the server after the repairs. The server is expected to last another five years beyond the date of repair. AirSoft uses the straight-line method for amortization purposes and pro-rates for the number of months the asset was owned in the year. Equipment repair On July 1, 2022, one of our server/equipment broke down. The cost of $11,500 in repairs is included in repairs and maintenance expenses. The repair company claims the repairs will increase the server's service capacity, increase the cycle time by 10%, and increase capacity by 5% to 10%. The programmer staff really did see a difference in the performance of the server after the repairs. The server is expected to last another five years beyond the date of repair. AirSoft uses the straight-line method for amortization purposes and pro-rates for the number of months the asset was owned in the yearStep by Step Solution
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